Do your investments have to be “at-risk” to obtain an investment visa?

Foreign investors can gain immigration status in the United States with an E-2 temporary nonimmigrant visa and an EB-5 permanent immigrant visa (what is commonly known as a “green card”). Misleading advertisements promise a “no-risk” E-2 or EB-5 investment. To obtain one of these visas you must show that your invested funds are “at-risk”. In other words, there is a chance that an investment will lose value.

Immigration laws define at-risk:

• If the funds are not subject to partial or total loss if business fortunes reverse, then it is not an ‘investment’ for E-2 purposes.
• The capital must be subject to partial or total loss if investment fortunes reverse.
• A contribution of capital must be unprohibited to qualify as an investment and it must be placed at risk for the purpose of generating a return.
• To qualify as an investment, the immigrant investor must actually place his or her capital at risk. Guaranteed returns are not allowed; for the capital to be at risk there must be a risk of loss and a chance for gain.

Download the entire alert here. If you have questions about how our office can assist you with your E-2 investor visa call Jacki and her team at 630-262-1435.